Cai, Jie; Li, Nan; Santacreu, Ana Maria - 2021
, and knowledge diffusion. We study the effect of trade liberalization in an endogenous growth model in which comparative … advantage and the stock of knowledge are determined by innovation and diffusion. We calibrate the model to match observed cross …-country and cross-sector heterogeneity in production, innovation efficiency and knowledge spillovers. Our counterfactual analysis …